Correlation Between BeiGene and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BeiGene and Regeneron Pharmaceuticals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BeiGene and Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeiGene and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on BeiGene and Regeneron Pharmaceuticals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BeiGene with a short position of Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Regeneron Pharmaceuticals.
Diversification Opportunities for BeiGene and Regeneron Pharmaceuticals
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between BeiGene and Regeneron is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals and BeiGene is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BeiGene are associated (or correlated) with Regeneron Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regeneron Pharmaceuticals has no effect on the direction of BeiGene i.e., BeiGene and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between BeiGene and Regeneron Pharmaceuticals
Given the investment horizon of 90 days BeiGene is expected to generate 2.03 times more return on investment than Regeneron Pharmaceuticals. However, BeiGene is 2.03 times more volatile than Regeneron Pharmaceuticals. It trades about 0.12 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.4 per unit of risk. If you would invest 20,264 in BeiGene on September 1, 2024 and sell it today you would earn a total of 1,236 from holding BeiGene or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| BeiGene |
| Regeneron Pharmaceuticals |
BeiGene and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Regeneron Pharmaceuticals
The main advantage of trading using opposite BeiGene and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Regeneron Pharmaceuticals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Regeneron Pharmaceuticals will offset losses from the drop in Regeneron Pharmaceuticals' long position.| BeiGene vs. Tff Pharmaceuticals | BeiGene vs. Eliem Therapeutics | BeiGene vs. Inhibrx | BeiGene vs. Enliven Therapeutics |
| Regeneron Pharmaceuticals vs. Tff Pharmaceuticals | Regeneron Pharmaceuticals vs. Eliem Therapeutics | Regeneron Pharmaceuticals vs. Inhibrx | Regeneron Pharmaceuticals vs. Enliven Therapeutics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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